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Multiple marketing channels have arisen with the growing demand for regeneratively farmed products. It makes sense for some farms and ranches to build direct-to-consumer brands and market directly to their audiences. For others, the opportunity to lean into the wholesale channel and build relationships with schools, food hubs, restaurants, and emerging consumer packaged brands lends itself nicely to many operations.
Which sales channels farms ultimately choose to sell into depends on many factors: type of crops, scale of production, reliability of harvests, surrounding markets, and the personality of the farmers running the business. For most farms, there will be a blend of sales channels that will evolve, and there will be no “wrong” answers.
Selling directly to consumers has benefits, such as higher margins, more control of brand integrity, and the ability to build relationships directly with customers. However, some drawbacks make it a challenging channel for every farm to follow.
Wholesale customers offer upsides to many farms, especially those that are regenerative.
Selling wholesale can provide farms with more stability than direct-to-consumer. The larger orders to schools, restaurants, and groceries allow farms to sell more crops at once and typically have more predictable ordering schedules, reducing the dependency on farmer’s markets and other direct-to-consumer sales. The trade-off here is usually reliability and bulk orders for profit margin and that direct relationship with the end customer.
What makes wholesale different when combined with regenerative agriculture is that many restaurants, food services, and brands increasingly seek products with a deeper story. Typically, farms give away margins when selling wholesale, but regenerative agriculture can provide a competitive edge where they can gain premiums, especially if certified regenerative.
Wholesale buyers increasingly want to share the regenerative farmer's story, especially in the consumer packaged goods industry, such as retail. Consumers are eager to pay more for regeneratively grown products. They are eager to connect with the farmers growing the food. Wholesale channels allow larger amounts of consumers to be exposed to regeneratively grown products, creating a positive feedback loop for both growers and consumers alike.
Depending on the farm, the crops being grown, the scale and output, and the surrounding markets, there will be multiple wholesale avenues to explore. Over time, farms can explore what channels suit their needs and growth goals.
Many schools are prioritizing healthier food options through farm-to-school initiatives. In California, their Farm-to-School Program is improving the health and well-being of California schoolchildren through integrated food-based education and healthy food access. California schools serve hundreds of millions of meals each year, and expanding opportunities for local food procurement tied to food-based education is essential for establishing healthy eating habits that children can carry into adulthood.
Farmers will have to check with their local government to see if there are any existing or emerging programs they can use. The Chef Anne Foundation is a fantastic resource for farmers to review for regional support.
Selling wholesale to restaurants comes in a variety of scales and angles. Sweetgreen and Chipotle are national food chains building out regional support to source from local farms directly. Local Line was selected as a Farm-to-Fork Partner of Chipotle Mexican Grill to help source local food for its 3,200+ restaurants.
On the other scale, local restaurants are seeking to cater to customer demands of fresh, local ingredients. If farms are located by metropolitans with more fine dining and upscale restaurants, there may be an opportunity to collaborate directly with chefs who seek unique, high-quality crops or pasture-raised proteins. Usually, these relationships can be long-lasting, and whole crops can be sold before seeds are planted.
For farmers who have food co-ops and local grocery chains, their regeneratively grown products are highly sought after. This channel can be a strong one that compliments direct-to-consumer sales, as these stores enjoy promoting precisely where they are sourcing their foods. These stores also value sourcing seasonal and premium products, as their customer base is highly attuned to healthy living trends and farm-to-table eating. If farms produce value-added goods but don’t have the scale to get into national chains, these local co-ops and grocery stores are perfect places to sell those products wholesale.
👉Currently, local accounts for 40% of Portland Food Co-op’s food purchasing. Learn more about how they leverage Local Line to manage their ordering direct from producers.
https://www.youtube.com/watch?v=IPzmqkZGhbI&t=7s
One wholesale that is emerging specifically for certified regenerative farms is providing ingredients for consumer packaged goods brands. These accounts can be hard to secure, but once farms do, they can be extremely profitable, both financially and for their brand. These wholesale customers require higher production quantities and may not be suitable for most small farms.
One of the best examples of this is Quinn Snacks. Quinn has worked directly with Nebraska sorghum grower Steve Tucker since 2020, where he grew all of their white sorghum for some of their emerging product lines. In 2023, Quinn announced its participation in the Soil Carbon Initiative (SCI), a program incentivizing farmers to improve soil health. They aim to use only regenerative sorghum and sunflower oil in their snacks by 2024.
RegenBrands Coalition is helping increase the adoption of regenerative agriculture by assisting regenerative brands to collaborate to solve ingredient sourcing and supply chain challenges. They are an incredible resource for farmers who want to keep up with regenerative food brands.
Winning wholesale customers may take time, especially when farms are starting. Farmers should focus on building relationships and learning as much as possible about the demands and rhythms of the customers they want to serve. Depending on which channel they are seeking, the opportunity to meet the customers varies. Attend local food expos, eat at restaurants, introduce themselves to chefs, and become a member of a local co-op.
👉Want to start selling wholesale? Get Local Line’s Wholesale Readiness Program.
Once the wholesale accounts are established, the real work begins. It is important to be consistent, organized, and reliable. Always strive to go above and beyond because there are established supply chains for many of these customers competing for their business. Be creative in differentiating the farm’s reputation, and as you scale, existing customer referrals will be valuable.
Lastly, even if farms only sell wholesale, building a brand online and staying relevant on social media is important. Their digital community will continue to grow in value. It will also help when negotiating wholesale accounts, as the more engagement and community they have online, the more they can amplify their wholesale partners.
Ready to start selling wholesale? Learn more about how thousands of farms trust Local Line every day for their sales.
Selling wholesale can provide stability through bulk orders and predictable sales, especially for regenerative farms. It allows farms to reach larger audiences, such as schools, restaurants, and grocery stores, while maintaining a steady income stream. Although wholesale typically offers lower profit margins, regenerative products often command premium prices, making it a valuable channel for many farms.
Wholesale markets, such as restaurants and food hubs, increasingly seek regenerative products with a compelling story behind them. By selling wholesale, farms can reach a larger consumer base, amplify awareness of regenerative agriculture, and build a strong brand. Wholesale opportunities also offer the potential for higher-volume sales, making it easier to manage large quantities of crops or livestock.
Regenerative farms can explore a variety of wholesale channels, including:
Building relationships with potential wholesale customers is key to securing and maintaining accounts. Farmers should attend food expos, introduce themselves to chefs, and join local food co-ops. Once accounts are established, farms must remain reliable, organized, and creative to differentiate their products. Consistent, high-quality service and a strong brand reputation can help sustain long-term wholesale relationships.
